Markets Right Now: S&P 500 notches 3rd straight weekly gain

Galtero Lara
Abril 15, 2019

The S&P 500 closed out the week just shy of topping an all-time high set back in late September, with the other two benchmarks closing within 2% of their own records.

JPMorgan Chase & Co rose 2.5% after the largest USA bank by assets topped quarterly earnings expectations, helped by higher interest income and gains in the bank's advisory and debt underwriting business.

Banks are leading the way higher Friday.

European stock markets were also all stronger at the close, with many banking stocks getting a lift from their United States counterparts.

Energy companies rallied after Chevron stated it could pay $33 billion to buy equal Anadarko Petroleum. The sector has been rising as oil prices moved steadily higher throughout the year.

Walt Disney Co shares hit a record high after the company priced its streaming service in a bid to challenge the digital dominance of Netflix Inc.

Netflix shares were down 3.6%. Indexes in Europe and Asia rose broadly.

Investors will be focusing over the next few weeks on company earnings reports in hopes of gleaning clues about the trajectory of the US economy and corporate profits.

Analyst now expect S&P 500 companies to show a 2.3 per cent year-on-year decline in earnings, slightly improved from their last reading, per Refinitiv data.

Stocks notched solid gains on Wall Street Friday, erasing most of the losses the market sustained after an uneven week of trading.

The Dow Jones Industrial Average rose 269 points, or 1%, to 26,412.

The Nasdaq composite gained 36.80 points, or 0.5%, to 7,984.16.

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The market was coming off a wobbly week as investors anxious that the early first-quarter earnings reports would come in even weaker than the low expectations analysts already have.

Sam Stovall, chief investment strategist at CFRA, said the solid results from major banks Friday were encouraging, but investors need to see more.

"In general, you need to have the financial companies participate in order for a market advance to continue", Stovall said. Other banks also rose.

OIL! Anadarko Petroleum surged 32 percent as Chevron transferred in with a $33 billion buyout which will give it a position at the energy-rich Gulf of Mexico along with Permian Basin region in Texas.

The S&P energy index was up about 0.44%, with peers Devon Energy Corp, EOG Resources Inc and Pioneer Natural Resources Co gaining between 3% and 11%. Chevron was one of the few decliners in the sector.

MAKING BANK: JPMorgan Chase climbed 4% and Wells Fargo climbed 2.1% after reporting strong gains in the first quarter. They are the first major bank to release financial results.

Wells Fargo initially rose after its results beat analysts' forecasts, but its shares turned lower by midmorning and never recovered.

Stocks are broadly higher on Wall Street in early trading as banks and media companies move higher.

STREAMING MOUSE: Disney surged 9% after it released plans to offer a streaming entertainment service.

Disney, meanwhile, was the shining star of the blue chips after the company announced its steaming service, Disney+, would debut on November 12 for $6.99 a month.

Streaming rival Netflix Inc slid 4.5 per cent. Disney, which gained 11% after revealing details about its new streaming service Disney+, was more than enough to right the ship.

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